Assessing technology’s impact on insurance claims

Claims magazine, PropertyCasualty360.com and RMS recently participated in a Twitter chat (#PC360ClaimsTech) discussing the effect of technology on the insurance claims process. Insurance executives from multiple companies shared their insights on what’s working and how it affects claims and communication with policyholders.

“Companies are looking to reduce costs by allowing customers to self-serve and use digital tools to inspect property without having to send out an adjuster,” shared Kristin Marr, president of Valen Analytics.

In addition, “many of the leading companies are leveraging digitalization to improve processes, quality and outcomes,” according to Chris Tidball, vice president of sales and claims transformation strategy for EXL Group.

Some insurers are concerned that implementing new technology could preclude human involvement with the claims process, leading to less satisfied customers. However, as Rebecca Morgan, senior director of product management for Mitchell’s Workers’ Compensation Solutions pointed out, “If we look at Amazon as an example, we have very little human interaction with Amazon employees, yet Amazon customers continue to be incredibly loyal because of the excellent overall customer experience. The same is true for insurance.”

Technology & disasters

A series of devastating hurricanes last fall allowed insurers to see first-hand the impact InsurTech can have on the claims process. “Technology is making the interactions more accurate, timely and faster,” said John Sarich, vice president of strategy for VUE Software.

Neeraj Sibal, assistant vice president of EXL Analytics, recognizes the value InsurTech brings to the claims process and how it exceeded conventional boundaries as mobile apps allowed for the easy transmission of information. “A photo share, a video chat with an adjuster or reporting through chatbots are changing the customer experience. Early adopters of these technologies are leveraging reduced cycle times and creating happier and more satisfied customers.”

“In addition to creating a more seamless, hassle-free process, InsurTech can also help members become smarter about risk and prevent future losses,” added Derek Zahn, vice president of claims for the western division of PURE Insurance.

InsurTech is also changing the first notice of loss for policyholders and insurers. “Historically, FNOL has been very manual,” tweeted Jonathan Silverman, director, worldwide insurance at Microsoft. “It makes sense to target it as an area for improvement. Today, we can automate the identification of an accident (for example) using manufacturer’s data and the alerts when there is an impact or an airbag deployment.”

Technology is also changing the interaction between insurers and policyholders. “The use of InsurTech is key to reducing the friction points that occur at every level, including with providers,” shared Don Lipsy, managed care specialty products manager with Sedgwick.

Farhana Alarakhiya, vice president of RMS concurred, tweeting, “There are many ways – delivery of analytics to the point of impact so smarter decisions can be made that are of benefit to both the customer and insurer.”

The experts agreed that InsurTech is a positive addition to the insurance claims process for carriers and policyholders. PC360 will continue the conversation at #PC360ClaimsTech.